Hi,
Can someone explain the difference between PC (Prime Cost) and PS (Provisional Sum)? Thanks.
Hi Urilla,
Do you mean in building terms?
If so a provisional sum is a cost that can go up and down. Earthworks and anything that requires digging will be a provisional sum as who knows what you could find and the price can easily be blown out. However, it is possible it will come in under the amount and you will receive a credit.
A prime cost on the other hand relates to an allowance made to make a selection. For example if you have $5k to choose appliances this relates to the retail cost and doesn't include labour. So you would go out to a shop and choose what you want in this range. If the price comes in cheaper you will not generally receive a credit (check with the builder), but if you choose over you will need to pay the difference.
Hope this helps.
Kate
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